Moody's rates Vanguarda notes B3

Moody's Investors Service said it assigned a provisional B3 local-currency corporate family rating to Vanguarda Participacoes SA and a provisional B3 foreign-currency rating to its proposed guaranteed $200 million senior unsecured notes due in 2015.

The outlook is stable.

The proposed notes will be issued by Vanguarda do Brasil SA, a subsidiary of Vanguarda, and these bonds will be unconditionally and irrevocably guaranteed by Vanguarda and all of its subsidiaries.

The rating reflects the company's small size relative to rated peers, seasonality of its business causing earnings volatility, concentration of farms in primarily one state in Brazil and dependency on a few customers and commodities, Moody's said.

These negative factors are balanced by the company's leading position as a producer of soybean, cotton and corn in Brazil with 27 years of operations and one of the highest levels of productivity, the agency said.

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